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atnt has a 40% debt and 60% common equity as its target capital structire. its cost of debt before tax is 11% .the beta of
atnt has a 40% debt and 60% common equity as its target capital structire. its cost of debt before tax is 11% .the beta of the company is 1.3 the risk free rate is 3% and the market rosk premium is 7% .marginal tax rate is 30%
a) calculate after tax cost of debt
b) calculate the cost of equity based on the info provided
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
14th Edition
0135175216, 978-0135175217
